2010 will see the arrival of new players on the Canadian market for mobile
The first new player is in use for several days, it is Globalive. The big three had strongly opposed its license application with the CRTC. Opposition had been successful, since the agency had rejected the record company felt it was not under Canadian control.
The Industry Minister Tony Clement has finally reversed the decision of the CRTC for the purpose of promoting competition: "Our aim has been to increase competition in the telecommunications industry, leading to a price reduction, better service and greater choice for consumers and businesses, "he said.
In Quebec, Videotron will launch its mobile network next summer
If Globalive has no license to operate in Quebec, Quebec consumers will still see on the market the Vidéotron mobile provider, a subsidiary of Quebecor. According to Quebecor, network development is well underway. The facilities are indeed being set in almost 60% of sites that would launch the service in the first quarter of 2010.
According to Professor Louis Hébert, HEC Montréal, by modifying the structure of the market, Videotron will certainly put pressure on prices. Telecommunications analyst at Consumers Union, Mr. Anthony Hemond, agrees. He said it is likely that Videotron could make aggressive bids including its mobile plans in bundles (cable, Internet, home phone and mobile).
DAVE, Bragg, Shaw and Public Mobile are also in the running
In addition to Videotron, Public Mobile Holdings is also preparing its establishment in Quebec. On the contrary, Data & Audio-Visual Enterprises Wireless (DAVE), which will provide services without a contract in Toronto, Vancouver, Calgary, Edmonton and Ottawa, has no license to operate in the province. Similarly, Bragg Communications and Shaw Communications are working to set up their mobile network.
All these new operators will undoubtedly work cut out to Bell, Telus, Rogers and their subsidiaries at a discount, Fido, Solo, Virgin and Koodo. To deal with its rivals, Rogers has already made staff cuts. Like Telus, Rogers has also taken a step towards the abolition of fees for network access. However, they were reflected in the total price package.